**Executive Summary:**
In response to Lok Sabha Unstarred Question No. 4501, the Ministry of New and Renewable Energy provided details on the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PMKUSUM) scheme, launched in March 2019. The scheme aims to de-dieselize the farm sector, provide daytime solar power, and ensure energy security for farmers. As of July 31, 2025, significant progress has been made in installing solar power plants and solarizing agricultural pumps under the scheme.
**Key Points / Main Content:**
* **Scheme Objectives and Components:**
* The PMKUSUM scheme aims to de-dieselize the farm sector and provide energy security to farmers.
* Component A: Setting up 10,000 MW of decentralized, ground-mounted, grid-connected solar power plants.
* Component B: Installation of 14 lakh standalone off-grid solar agriculture pumps.
* Component C: Solarization of 35 lakh existing grid-connected agriculture pumps, including Feeder Level Solarization (FLS).
* Inter-component transfer of quantities between B and C is allowed.
* **Progress:**
* As of July 31, 2025, 640.99 MW has been installed under Component A.
* 15.08 lakh pumps have been installed/solarized under Components B and C.
* **Impact and Benefits:**
* Reduces dependence on diesel and grid power in rural areas through solarization.
* Farmers can sell surplus power to DISCOMs, increasing income.
* Provides assured daytime solar power, relieving states of financial burdens related to subsidized electricity.
* Expected to save 40 million tonnes of carbon emissions per year.
* Promotes sustainable agriculture and energy self-reliance.
* **Financial Assistance (CFA):**
* **Component A:** Procurement Based Incentive (PBI) to DISCOMs: 40 paise/kWh or Rs. 6.60 lakhs/MW/year (whichever is lower) for five years. No direct CFA.
* **Component B:** CFA of 30% of benchmark cost or tender price (whichever is lower). 50% CFA for North Eastern States, Sikkim, Jammu & Kashmir, Ladakh, Himachal Pradesh, Uttarakhand, Lakshadweep and A&N Islands. State/UTs must provide at least 30% financial support. The balance is contributed by the beneficiary.
* **Component C:** CFA of Rs 1.05 Crore per MW (Rs 1.75 Cr. per MW for NER Hilly Islands) for agriculture feeder solarization. No mandatory state/UT financial support required. Can be implemented in CAPEX or RESCO mode.
**Impact Analysis:**
* **Farmers:**
* *Impact:* Benefit from assured daytime solar power, reduced dependence on diesel, additional income through selling surplus power, and financial assistance for installation.
* *Action Required:* Assess land suitability for solar power plants, apply for installation of solar pumps, and coordinate with DISCOMs for power purchase agreements.
* **DISCOMs:**
* *Impact:* Receive Procurement Based Incentives (PBI) for Component A, reduce financial burden of subsidized electricity, and manage power purchase from farmers.
* *Action Required:* Facilitate grid connection for solar plants, enter power purchase agreements with farmers, and streamline the procurement process.
* **State/UT Governments:**
* *Impact:* Potential financial contribution towards Component B (can be waived), reduced financial burden of subsidized electricity, and contribution to environmental sustainability.
* *Action Required:* Provide financial support for Component B (if applicable), facilitate scheme implementation, and promote adoption among farmers.
Key Entities Referenced
Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PMKUSUM): A scheme by the Government of India to solarize agricultural pumps and support farmers.
Ministry of New and Renewable Energy (MNRE): The Indian government ministry responsible for new and renewable energy.
Component A: One of the components of the PMKUSUM scheme focused on setting up decentralized grid-connected solar power plants.
Component B: One of the components of the PMKUSUM scheme focused on installation of standalone off-grid solar agriculture pumps.
Component C: One of the components of the PMKUSUM scheme focused on solarization of existing grid-connected agriculture pumps, including Feeder Level Solarization (FLS).
North Eastern States: Refers to the states in the North East region of India, including Sikkim, for which specific financial assistance is allocated.
Jammu and Kashmir: A region in India, for which specific financial assistance is allocated under Component B.
Himachal Pradesh: A state in India, for which specific financial assistance is allocated under Component B.
GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
LOK SABHA
UNSTARRED QUESTION NO. 4501
ANSWERED ON 20/08/2025
FARMERS BENEFITTED UNDER PM-KUSUM
4501. THIRU ARUN NEHRU
WILL THE MINISTER OF NEW AND RENEWABLE ENERGY BE PLEASED TO
STATE:
(a) whether the Government is implementing the Pradhan Mantri-Kisan Urja Suraksha evam
Utthaan Mahabhiyan (PM-KUSUM) to solarize agricultural pumps and support farmers and if
so, the details of progress achieved so far;
(b) the number of farmers and agricultural feeders covered under the PM-KUSUM in the
country;
(c) the manner in which the PM-KUSUM reduces dependence on diesel and grid power in
rural areas;
(d) the details of financial and technical assistance provided to farmers for installation under
PM-KUSUM; and
(e) the manner in which PM-KUSUM contributes to farmer income, sustainable agriculture
and energy self-reliance?
ANSWER
THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER
(SHRI SHRIPAD YESSO NAIK)
(a) & (b) PM-KUSUM Scheme was launched by the Government in March 2019 with the
objective of de- dieselizing the farm sector, providing assured daytime solar power and to
provide energy security to farmers. The scheme has three Components:
(i.) Component A: Setting up of 10,000 MW of Decentralized Ground/ Stilt Mounted Grid
Connected Solar or other Renewable Energy based Power Plants by the farmers on their land;
(ii) Component B: Installation of 14 lakh standalone off-grid solar agriculture pumps; and
(iii) Component C: Solarization of 35 lakh existing grid-connected agriculture pumps
including Feeder Level Solarization (FLS).
Scheme allows inter-se transfer of quantities between Component B and Component C.
As reported by SIAs, as on 31.07.2025, total of 640.99 MW has been installed under
Component A out of allocated capacity of 10,000 MW and under Component B and C, a total
of 15.08 lakh pumps are installed/solarized out of allocated capacity of 49 lakh pumps.
(c) PM KUSUM Scheme helps de-dieselize the farm sector by allowing installation of stand-
alone solar pumps and solarizing existing grid connected pumps along with the feeder level
solarization.
(d) The details of CFA provided under PM KUSUM are attached at Annexure I.
(e) PM-KUSUM is motivating farmers to adopt solar energy and enhance their income. The
key benefits and positive impact of the scheme are as follows:• Farmer can install grid connected solar power plant up to 2 MW on their land and sell the
surplus power to DISCOMs and earn additional income.
• With the help of feeder level solarization, scheme allows for assured day time solar power
to the farmers and relieve the state from the financial burden for providing free/subsidized
electricity for agriculture.
• The scheme envisions to save carbon emissions of 40 million tonnes per year.
• The scheme contributes to advancing sustainable development by deploying solar energy
for agriculture. By replacing diesel and other unclean fuels for agricultural use, the scheme
allows for mitigating carbon emissions in this sector.
*****Annexure-I referred to in reply to part (c) to (3) of Lok Sabha Unstarred Question No.
4501 for 20.08.2025
CFA under PM-KUSUM Scheme
Component Financial Assistance available
Component A Procurement Based Incentive (PBI) is provided to the
DISCOMs @ 40 paise/kWh or Rs.6.60 lakhs/MW/year,
whichever is lower, for five years. There is no CFA under this
Component.
Component B ● CFA of 30% of the benchmark cost issued by MNRE or the
Component C (Individual Pump prices of the systems discovered in the tender, whichever is
Solarisation) lower is provided.
● However, in North Eastern States including Sikkim,
Jammu & Kashmir, Ladakh, Himachal Pradesh and
Uttarakhand, Lakshadweep and A&N Islands, CFA of 50%
of the benchmark cost issued by MNRE or the prices of the
systems discovered in the tender, whichever is lower, is
provided.
● In addition, the respective state/UT has to provide at least
30% financial support. Balance cost is to be contributed by
beneficiary.
● Component B and Component C (IPS) of PM KUSUM
scheme can also be implemented without State share of
30%. The Central Financial Assistance will continue to
remain 30% and rest 70% will be borne by the farmer.
Component C (Feeder Level For agriculture feeder solarization, CFA of Rs 1.05 Crore per
Solarisation) MW (1.75 Cr. per MW for NER/ Hilly/ Islands) is provided.
There is no mandatory requirement of financial support from
participating State/UT. The feeder solarisation can
be implemented in CAPEX or RESCO mode.